Maersk Q4 Beats Expectations as Freight Rates Jump 80%

A.P. Moller – Maersk says preliminary results for the fourth quarter of 2021 beat expectations.

Revenue during the final three months of last year came in at $18.5 billion, with an underlying EBITDA of $8 billion and underlying EBIT of $6.8 billion, Maersk said in a trading update issued Friday.

The strong results come as average freight rates during the quarter jumped by 80% compared to Q4 2020, even as volumes in Maersk’s ocean shipping segment decreased 4%.

“The strong result in the quarter reflects the continuation of the exceptional market situation within Ocean caused by the global disruptions to the supply chains, which have led to further increase in container freight rates,” Maersk said in its trading update.

“Consequently, given the strong performance in Q4 2021 the preliminary full-year figures for 2021 will exceed our previous guidance… now reporting an underlying EBITDA of USD 24bn (previous guidance of USD 22-23bn), an underlying EBIT of USD 19.8bn (previous guidance USD 18-19bn) and a free cash flow (FCF) of USD 16.4bn (previous guidance minimum USD 14.5bn),” Maersk said.

Maersk is set to provide a revised outlook for Q1 2022 and full-year 2022 as part of its annual 2021 report to be released next month.

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